Section 179 Deduction

TurboTax tells me that my section 179 deduction is limited to zero. I do not understand why. I have s-corp k1s that provide the deduction, and I have sufficient basis in my s-corp stock. Why is my deduction limited to zero?

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Section 179 Deduction

Does your tax return have 'earned' income on it, such as W-2s or self-employment income (usually on Schedule C)?

Section 179 Deduction

No, there was no earned income.

Section 179 Deduction

Section 179 is limited to the amount of your earned income. It will carry forward to future years for whenever you do have earned income.

As a side note, make sure you are familiar with the requirement that the corporation to be paying you "compensation" that will be on a W-2 (and all of the work and cost that is related to being on payroll).